Loans & Financial Support for Organizations Impacted by COVID-19

Jan. 7, 2021 Update: The Economic Aid Act passed on Dec. 27, 2020 extended and revised several federal support programs for employers and self-employed individuals. We have not yet updated the following information per the new Act; we're in the process of reviewing the latest guidance and will update this information accordingly. Stay tuned!

SBA Economic Injury Disaster Loan (EIDL)

The purpose of the EIDL program is to provide working capital to pay fixed debts, payroll, accounts payable, and other bills. These loans are not intended to replace lost sales or revenue or for business expansion. The EIDL program can provide up to $2 million in a low-interest loan with a long-term repayment plan. 

As of July 11, EIDL Advance funds are no longer available. The Advance program provided businesses with an emergency grant up to $10,000. The SBA is still processing EIDL applications even though the Advance is no longer available.

EIDL Overview

Main Street Lending Program

The Federal Reserve established the Main Street Lending Program to support small- and medium-sized organizations that were in sound financial condition before the COVID-19 pandemic. Working with banks, the Program offers loans from $250,000 to $300 million to eligible businesses. Main Street loans have a five-year maturity, deferral of principal payments for two years, and deferral of interest payments for one year. Eligible lenders may originate new loans or increase the size of existing loans.

Other SBA Loan and Business Relief Programs

The SBA has several other business interruption loan and relief programs to help small business owners maintain payroll and pay operating expenses during the COVID-19 pandemic:

Paycheck Protection Program: PPP Loans provide funds to cover up to 8 weeks of payroll and some operating expenses to incentivize businesses to keep workers employed during the COVID-19 pandemic. Up to 100% of the loan amount may be forgiven if workforce and compensation levels are maintained, and at least 60% of the loan is spent on payroll costs.

SBA Debt Relief: If you have an SBA 7(a), 504 or microloan that is in good standing, the SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. They will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020. 

SBA Express Bridge Loans: An SBA Express Bride Loan allows businesses that have a relationship with an SBA Express Lender to quickly access up to $25,000. 

Before accepting a loan, consult with your CPA, accountant, or business adviser (check your local Small Business Development Center (SBDC). You can also contact the Colorado Small Business COVID-19 Disaster Response Hotline at 303-860-5881 (available Monday-Friday, 8am-5pm).

Disclaimer: This information is provided as a self-help tool and does not constitute legal or financial advice. Laws, regulations and lending products are changing daily and decisions as to whether or how to use this information and/or what actions to take in response to the COVID19 Pandemic are solely those of the employer. The providers of this information disclaim any and all responsibility and liability for its accuracy, completeness or fitness for your particular business purposes.